What is the difference between economic profit and accounting profit?
a. Economic profit considers implicit and explicit costs; accounting profit considers only explicit costs.
b. Accounting profit considers implicit and explicit costs; economic profit considers only implicit costs.
c. Economic profits do not consider implicit costs; accounting profits do not consider explicit costs.
d. Accounting profits consider production costs; economic profits consider administration costs.
a. Economic profit considers implicit and explicit costs; accounting profit considers only explicit costs.
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Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of consumer surplus?
A) $50 thousand B) $112.5 thousand C) $225 thousand D) $337.5 thousand
If there is freeway congestion at 8 a.m., we can reduce (or eliminate) the congestion by
A) building more freeways. B) raising the price to drive on the freeway at 8 a.m. C) encouraging workers to carpool.. D) a and b E) a, b, and c